Which of the Following Defines Cash-Based Accounting System

question 60

Multiple Choice

Which of the following defines cash-based accounting system?

• A) Measures the cost of replacing an employee.
• B) Provides the appropriate information to the external community.
• C) Records transactions when money is either received or spent.
• D) Provides information to the management of a business and aids in internal controls.
• E) Records transactions when they occur.

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Definitions:

Sales Revenue

The income generated from selling goods or services over a specific period before deducting any costs or expenses.

Accounts Receivable

Payments due to a company from its customers for the provision of goods or services, yet to be paid.

Sales Invoices

Documents issued by a seller to a buyer, detailing products or services sold, quantities, prices, and terms of sale.

Reference Column

A column in a table that is used to cross-reference or link the data in one table with data in another, facilitating data lookup and retrieval.